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Author's profile photo Katrin Deissner

Governance, Risk, and Compliance (GRC) for SAP S/4HANA Cloud 2105

This blog provides you with the latest and greatest innovations that our SAP S/4HANA Cloud 2105 release has in store for you in the area of Governance, Risk, and Compliance (GRC). In addition to the innovations illustrated in my last blog on Governance, Risk, and Compliance (GRC) in SAP S/4HANA Cloud 2102, with this release, you can benefit from more than 30 commonly used controls from the new Best Practice Content for SAP Financial Compliance Management and enjoy our brand-new embedded analytics app for handling trade compliance blocks in SAP S/4HANA Cloud. 

Watch my video to get a quick overview of our SAP S/4HANA Cloud 2105 highlights for Governance, Risk, and Compliance:

This blog covers the following topics:

Financial Compliance

International Trade Management

Tax Compliance

If you are interested as well in what is new with Finance in SAP S/4HANA Cloud 2105, you can check out the blog by Ulrich Hauke.

Financial Compliance

You might remember from my last blog that with the 2102 release, we shipped the first version of SAP Financial Compliance Management – the latest member of our cloud GRC family. Based on SAP Business Technology Platform, this next-generation control solution allows you to transform your compliance processes from a cost factor into a strategic differentiator for your organization. It’s no longer only about after-the-fact documentation but about proactive risk management.

If you are new to the topic of SAP Financial Compliance Management, I recommend that you first read my blog on Governance, Risk, and Compliance (GRC) in SAP S/4HANA Cloud 2102. There, you will find a quick introduction into the new cloud GRC product. Please note that SAP Financial Compliance Management is not part of SAP S/4HANA Cloud, but a separate product and requires a separate licence.

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Best Practice Content for SAP Financial Compliance Management

With the 2105 release, compliance managers benefit from more than 30 commonly used automated controls. Thanks to this, you can check your SAP S/4HANA Cloud system for suspicious activities such as suppliers with disabled duplicate invoice checks or overpaid purchase orders compared to goods receipt. With Financial Compliance Management, you can choose between leveraging these finance-related automated controls either out-of-the-box or using them as templates for your own customer-defined controls. The corresponding scope item for SAP S/4HANA Cloud is called Financial Operation Monitoring with SAP Financial Compliance (3KY)‎.

If you are interested to have a very short glimpse on SAP Financial Compliance with 2105, I recommend to watch Video 2 (no audio available) right after this paragraph to get a quick overview. If you would like to have a deep dive on what SAP Financial Compliance offers with 2105, please check out Video 3 (with audio) which provides a detailed demo (approx. 17 min.) of one of the new automated controls which are available with SAP Financial Compliance 2105. In addition, you will learn about manual procedures, how to bundle the procedures in a control and how to execute the control in order to start the detection process. After that, you will learn how to prioritize and finally how to process the resulting issues, meaning the findings of the detection process.

Video 2: SAP Financial Compliance Management allows you to easily perform business-critical compliance checks through ready-made content (note: no audio available).

Now, you might be wondering where you as a customer can find the best practice content of SAP Financial Compliance Management. Well, the answer is pretty easy: You will find it directly in your customer system in the apps ‘Manage Automated Procedures’ and ‘Manage Controls’ as draft versions which you can use

  • either as is, obviously you would still have to enter e.g. your S/4HANA Cloud system etc., but apart from that it’s ready to use.
  • or if necessary, you can use the automated procedures and controls as templates and adapt them to your needs.

If you would like to know which controls are available with 2105, you can check out the SAP Help Portal: Best Practice Content of SAP Financial Compliance Management for SAP S/4HANA Cloud to see what is available for yourself.

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Detailed 2105 Demo of SAP Financial Compliance Management with SAP S/4HANA Cloud

Okay, so you’re interested in a deep-dive into SAP Financial Compliance Management. Video 3 offers exactly that. Let me explain a bit what the demo flow looks like so you can follow the demo flow very easily:

  1. Preparational step – Creation and activation of two procedures: An automated one and a manual one:
    • The automated procedure is part of the new best practice content for 2105 and called ‘Overpaid Goods Receipt in Purchasing Document Item’ and is about identifying overpaid purchase orders by comparing goods receipt with invoice amount.
    • The manual procedure is about reconciling bank accounts on a monthly basis
  2. Preparational step – Creation of a control for SOX compliance which bundles the two procedures
  3. Actual execution of the control – Creation and activation of the corresponding work package containing the control with the two procedures. The execution is scheduled for immediate execution.
    • Automated procedure: The results of the detection run are available immediately and can be displayed from the control or from within the ‘Display Automated Procedure Runs’ app. As the system has found suspicious activities and therefore the status of the run is ‘Failed’.
    • Manual procedure: The execution of the work package leads to fact that the assignee of the manual control receives a task in their inbox, the ‘Perform Manual Procedures’ app.
  4. The status of the work package is now ‘In Process’ as only one procedure has been executed so far.
  5. Execution of the manual procedure: The assignee performs the steps of the procedure and specifies a result for each of the steps as well as an overall result. Then the manual procedure is set to completed. The status of the work package is now completed as now also the manual procedure has been executed.
  6. Processing of issues: In the ‘Process Issues’ app, the findings – meaning the results of the automated procedure run – are prioritized by issue category and by risk level. The prioritization is done by means of rules in the SAP Business Rules service which is part of SAP Financial Compliance Management. In the ‘*Process Issues’ app, you can set a conclusion such as Confirmed or False Positive and Set them to Completed after the issues have been resolved.

Video 3: As of SAP Financial Compliance Management 2105, Compliance Managers can choose from more than 30 most commonly used automated procedures. Deep-dive on functionality available with release 2105 (including audio)

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International Trade Management

Also for International Trade, I have two innovations with SAP S/4HANA Cloud 2105 that I would like to share with you.

Embedded Analytics App for Trade Compliance Issue Handling and Compliance Checks for Sales Scheduling Agreements

With the 2105 release, we deliver a brand-new embedded analytics app for trade compliance issue handling which is called ‘Analyze and Resolve Blocked Documents’. The beauty of this app lies within the fact that it provides full transparency regarding blocked trade compliance documents in the system. Trade Compliance Specialists can easily analyze the documents and select their workload by visually and/or classically filtering blocked documents according to different dimensions such as legal regulations, document categories, and company codes. In addition, you can process blocked documents very easily from within the app, e.g. by assigning missing licenses or classifications.

Fig.1: As of SAP S/4HANA Cloud 2105, Trade Compliance Specialists can analyze and resolve trade compliance issues in the new embedded analytics app ‘Analyze and Resolve Issues’.

As you are well aware, for trade compliance, we offer three different checks for import and export processes: embargo checks, legal control, and SAP Watch List Screening. Now with SAP S/4HANA 2105, we introduce an additional document type to be included in our compliance checks on the export side: sales scheduling agreements.

Similar as with SAP Financial Compliance Management, I have included two videos for your convenience. If you are interested to have a very short glimpse on the new embedded analytics app for trade compliance, I recommend to watch Video 4 (no audio available) right after this paragraph to get a quick overview. If you would like to have a deep dive on what the new app offers with 2105, please check out Video 5 (with audio) which provides a detailed demo (approx. 5 min.).

Video 4: As of SAP S/4HANA Cloud 2105, Trade Compliance Specialists can analyze and resolve trade compliance issues in the new embedded analytics app ‘Analyze and Resolve Issues’.

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Detailed 2105 Demo of Embedded Analytics for Trade Compliance Block Handling

The following video 5, a deep-dive video on the new functionality regarding Trade Compliance in SAP S/4HANA Cloud, shows the new embedded analytics app ‘Analyze and Resolve Blocked Documents’ as well as the new document type Sales Scheduling Agreements that is supported.

Video 5: As of SAP S/4HANA Cloud 2105, Trade Compliance Specialists can analyze and resolve trade compliance issues in the new embedded analytics app ‘Analyze and Resolve Issues’. Deep-dive on functionality available with release 2105 (including audio)

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Tax Compliance

New Scenarios for Electronic Invoicing for Poland and Australia Available

Governments are going digital and businesses need to keep up with the pace of the digital transformation. Here are a few recent innovations addressing these growing needs. SAP Document Compliance supports creation of electronic documents to fulfil the B2G e-invoicing requirement in public procurement in Poland. SAP Document Compliance is an integrated end-to-end process to create electronic documents. You use the Peppol Exchange service to exchange electronic documents between your company and your business partners using the Peppol network.

Fig. 2: With SAP S/4HANA Cloud 2105, creation of electronic documents to fulfil the B2G e-invoicing requirement in public procurement in Poland

As part of the overarching Digital Business Plan, e-invoicing has recently been made mandatory for federal procurements by mid of 2022 in Australia and this requirement is addressed via SAP Document Compliance.

SAP Document Compliance is an integrated end-to-end process to create electronic documents. You use the Peppol Exchange service to exchange electronic documents between your company and your business partners using the Peppol network.

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If you’re interested to learn more about these innovations, join our SAP Learning Hub and participate in our SAP S/4HANA Cloud Early Release Series. Read this blog to find out how you can license for the Enterprise Support Edition as a Customer / Partner and benefit from our regular release series either live or on-demand.

 

For more information on SAP S/4HANA Cloud, check out the following links:

  • SAP S/4HANA Cloud release info here
  • GRC Collection Blog (roadmap, quarterly release highlights, microlearnings) here
  • Latest SAP S/4HANA Cloud Release Blogs here and previous release highlights here
  • Product videos on our SAP S/4HANA Cloud and SAP S/4HANA YouTube playlist
  • SAP S/4HANA PSCC Digital Enablement Wheel here
  • Early Release Webinar Series here
  • Inside SAP S/4HANA Podcast here
  • openSAP Microlearnings for SAP S/4HANA here
  • Best practices for SAP S/4HANA Cloud here
  • SAP S/4HANA Cloud Community: here
  • Feature Scope Description here
  • What’s New here
  • Help Portal Product Page here
  • Implementation Portal here

Follow us via @SAP and #S4HANA, or myself via LinkedIn or @DeissnerKatrin

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      2 Comments
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      Author's profile photo Neetin Datar
      Neetin Datar

      hi Katrin, great job succinctly describing the latest innovations!

      Author's profile photo Katrin Deissner
      Katrin Deissner
      Blog Post Author

      Hi Neetin,

      thanks! Glad you like it.

      Best regards,

      Katrin